United Airlines is reversing a long slide in average prices and increasing its profit.
United said Tuesday that it earned $580 million in the fourth quarter of last year, a 46 percent increase from a year ago despite higher fuel prices.
The results beat Wall Street’s expectations.
Like its rivals, United is benefiting from strong demand for travel, which is filling more seats.
A bruising fare war with discount carriers including Spirit Airlines may be ebbing. Revenue for each seat flown one mile — a key measure that roughly tracks prices — inched up 0.2 percent after falling 3.7 percent in the third quarter.
Overall, revenue rose 4.3 percent to $9.4 billion.
Excluding one-time gains and losses, the airline said it earned $1.40 per share. Nine analysts surveyed by Zacks Investment Research had expected $1.34 per share.
CEO Oscar Munoz boasted about the airline’s best-ever operational results, which he said improved the customer experience.
Once a laggard in on-time rankings, United has finished with above-average numbers each of the last nine months for which figures are available, according to the U.S. Department of Transportation.
Company executives were expected to give investors more details about cost-saving plans and the 2018 outlook at an event later Tuesday in New York.
United Continental Holdings Inc. shares closed up $1.10 at $77.97. In after-hours trading, they were up another $1.53 to $79.50.
